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SEC approves Nasdaq rule change to permit direct listings without an IPO

SEC approves Nasdaq rule change to permit direct listings without an IPO To explain the rule changes in Nasdaq’s new Listing Rule IM-5315-1, approved by the US Securities and Exchange Commission (SEC) on February 15, 2019, that permit direct listings on Nasdaq without an initial public offering, similar to the New York Stock Exchange (NYSE) rule changes approved in 2018.Design/methodology/approachExplains the legislative and regulatory background, historic limitations on direct Nasdaq listings, and de-tailed provisions of Nasdaq’s new Listing Rule IM-5315-1.FindingsThe direct listing alternative to an IPO may appeal to cash-rich companies that do not need the publicity or new capital associated with a traditional IPO.Originality/valueExpert analysis from experienced securities litigation and corporate governance lawyers. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Investment Compliance Emerald Publishing

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Publisher
Emerald Publishing
Copyright
© Cahill Gordon & Reindel LLP.
ISSN
1528-5812
DOI
10.1108/joic-05-2019-0031
Publisher site
See Article on Publisher Site

Abstract

To explain the rule changes in Nasdaq’s new Listing Rule IM-5315-1, approved by the US Securities and Exchange Commission (SEC) on February 15, 2019, that permit direct listings on Nasdaq without an initial public offering, similar to the New York Stock Exchange (NYSE) rule changes approved in 2018.Design/methodology/approachExplains the legislative and regulatory background, historic limitations on direct Nasdaq listings, and de-tailed provisions of Nasdaq’s new Listing Rule IM-5315-1.FindingsThe direct listing alternative to an IPO may appeal to cash-rich companies that do not need the publicity or new capital associated with a traditional IPO.Originality/valueExpert analysis from experienced securities litigation and corporate governance lawyers.

Journal

Journal of Investment ComplianceEmerald Publishing

Published: Oct 16, 2019

Keywords: US Securities and Exchange Commission (SEC); Nasdaq; Initial public offering (IPO); Direct listing; SEC Listing Rule IM-5315-1

References